The proposed racetrack is approaching the finish line. The Fairmont Butte Motor Sports Park (fairmontbuttemotorsportspark.com) has been proposed on 320 acres of land at 150th Street West at Hwy 138. The property owner and founder is Thomas E. Malloy. The Los Angeles County planning commission recently recommended the project at the September 2009 meeting. There are several more hurdles to jump, but the meeting this coming Saturday February 6th at the Lancaster Regional Library may go a long way to making this project a reality.
The proposed track is situated on privately owned land in Antelope Valley. Most of this area is vacant unused land or farmland in the remote area west of Lancaster, Ca. The track will be open to the public with no memberships required. The plan is not for commercial use, but for private motor car enthusiasts, car clubs, and racing organizations. The track will carve around Fairmont Butte just west of the poppy preserve.
The plans indicate that the racetrack would only use 140 of the available acreage and operate only during the daytime, and there would be no grandstands, allowing for only a few spectators. Racing would only take place on weekends and on occasional Fridays. The main obstructions that may upend the proposal are environmental issues. The few nearby residents could be exposed to excessive noise once it is up and running. It could also affect the area's wildlife, which includes lizards, badgers and burrowing owls, and it will be only a mile from the state protected wildflower poppy preserve. Environmentalists also indicated this area is also home to seasonal wildflowers, California buckwheat scrub and purple needle grass typically grow there. The racetrack group indicates that they will minimized these environmental issues by restricting noise, limiting racing and traffic and independent studies show that while there will be some impact to habitat, there would be no impact to wildlife movement or to the Poppy Reserve. In addition, the Fairmont Butte offers a natural barrier to noise and helps maintain the areas natural beauty.
There are also several Solar power companies forwarding proposals to develop this area, so the terrain will likely change rapidly in the coming years. Most private land owners and investors have looked for development and changes in this primarily rural vacant land. Property prices will likely increase in the coming years due to the coming growth, and we will keep you informed to these developments.
Saturday, February 6, 2010
Saturday, January 23, 2010
How Mitigation Can Benefit the Vacant land Investor and the Environment
Environmental mitigation describes projects or programs which are intended to offset development impacts to an existing natural resource like wetlands, endangered species, rivers and streams. Environmental mitigation is typically a part of an environmental crediting system established by governing bodies like the BLM (Bureau of Land Management) which allocates debits and credits. It is similar to the government proposed cap and trade system to offset global warming. A debit to the environment would occur when a housing developer, or Wind and Solar Company plans to develop land for commercial purposes. A debit occurs when a natural resource has been destroyed or severely impaired, while a credit is given when a natural resource has been deemed to be improved or preserved. So, when a business or individual has a debit to the environment then they are required to purchase a credit. There is also mitigation banking which is typically created in advance for multiple commercial parties when compensation credits cannot be achieved at the development site. Mitigation is a friendlier alternative to restrictive environmental laws, since development can proceed in exchange for compensation to preserve or repair a natural environment. Mitigation can also be beneficial to land owners, since some land like wash land or mountain land is not developable, but it is more suitable for mitigation. This increases the value of some non-developable land miles from development.
In Northern Los Angeles County and San Bernardino County some renewable energy companies may be required to purchase mitigation land if their projects are on BLM or other undisturbed land, which may encroach within prime desert tortoise and Mojave ground squirrel territories. The desert tortoise roams much of the desert in San Bernardino County, which will curtail any development within their habitat. Much of this land is privately owned, and may be designated as mitigation land by the government. The Solar Farm developers may be forced to buy endangered species land before a building permit is issued. This is another example where land banking is beneficial to the long term investor. Many investors think that their property will primarily increase in value due to urban development upon their property, but in this case virtually worthless desert land becomes a needed commodity to the technological advances of solar energy companies. The new growth in Antelope Valley and San Bernardino Counties is increasingly becoming green energy development, and the wise patient land investor can benefit and preserve the environment at the same time.
In Northern Los Angeles County and San Bernardino County some renewable energy companies may be required to purchase mitigation land if their projects are on BLM or other undisturbed land, which may encroach within prime desert tortoise and Mojave ground squirrel territories. The desert tortoise roams much of the desert in San Bernardino County, which will curtail any development within their habitat. Much of this land is privately owned, and may be designated as mitigation land by the government. The Solar Farm developers may be forced to buy endangered species land before a building permit is issued. This is another example where land banking is beneficial to the long term investor. Many investors think that their property will primarily increase in value due to urban development upon their property, but in this case virtually worthless desert land becomes a needed commodity to the technological advances of solar energy companies. The new growth in Antelope Valley and San Bernardino Counties is increasingly becoming green energy development, and the wise patient land investor can benefit and preserve the environment at the same time.
Saturday, January 9, 2010
The City of Lancaster Planning Department is Proposing Zoning Changes to Further Wind and Solar Projects Expansion in Antelope Valley
Just this past December the City of Lancaster Planning Commission reviewed a proposal to amend the zoning ordinance to allow for wind energy uses in commercial and industrial zones, and expand solar outside of these zones. The planning department is recommending to Adopt Resolution No. 09-37 for the City Councils approval which would amend the Zoning Ordinance (Title 17 of the Lancaster Municipal Code). The order would provide regulations for co-location of small wind energy systems in commercial and industrial zones with the addition of Sections 17.12.070.W, 17.16.060.A.14, and Section 17.40.690, and Section 17.08.070.Z would allow solar electrical generating plants in rural residential zones subject to a conditional use permit. Currently, the Zoning Ordinance allows solar electrical generating plants only in heavy industrial zones with a director’s review application. In order to address the increasing demand for alternative energy, the planning staff is recommending this addition to Section 17.08.070.Z.
The City’s Zoning Ordinance is intended as a regulatory document to implement the goals, policies and objectives contained within the City’s General Plan. By approving the proposed amendments to the current Zoning Ordinance, it would further implement the policies set forth in the General Plan by allowing alternative small energy systems in the commercial and industrial zones, as well as utilizing rural residential areas to further the development of solar power plants.
This proposal and a number of other proposals shows the City of Lancaster’s increasing interest and demand to expand alternative energy projects within the city limits. There are a number of solar projects taking place outside the city limits on unincorporated Los Angeles County land. This proposal by the planning department would provide the first wind energy project within the city limits. Most of the wind energy projects are in Tehachapi, in Kern County north of Los Angeles. The proposal would also create tax revenue for the City of Lancaster, which the city doesn’t receive with County projects. Currently, the City of Lancaster has very limited heavy industrial zoning, so expanding solar projects to operate in rural residential zones expands a much wider net for solar companies. Owners of vacant unused land within the city limits of Lancaster should see a price increase for their property in the coming years if this plan gets final approval. We will keep you posted with the progress.
The City’s Zoning Ordinance is intended as a regulatory document to implement the goals, policies and objectives contained within the City’s General Plan. By approving the proposed amendments to the current Zoning Ordinance, it would further implement the policies set forth in the General Plan by allowing alternative small energy systems in the commercial and industrial zones, as well as utilizing rural residential areas to further the development of solar power plants.
This proposal and a number of other proposals shows the City of Lancaster’s increasing interest and demand to expand alternative energy projects within the city limits. There are a number of solar projects taking place outside the city limits on unincorporated Los Angeles County land. This proposal by the planning department would provide the first wind energy project within the city limits. Most of the wind energy projects are in Tehachapi, in Kern County north of Los Angeles. The proposal would also create tax revenue for the City of Lancaster, which the city doesn’t receive with County projects. Currently, the City of Lancaster has very limited heavy industrial zoning, so expanding solar projects to operate in rural residential zones expands a much wider net for solar companies. Owners of vacant unused land within the city limits of Lancaster should see a price increase for their property in the coming years if this plan gets final approval. We will keep you posted with the progress.
Wednesday, December 16, 2009
Antelope Valley High Desert Oasis Launches Space Tourism at Mojave Air and Space Port
Antelope Valley is adding more high tech to its Solar and Wind technology, and Stealth Bomber Testing. Virgin Galactic unveils Enterprise-SpaceShipTwo as its first of five potential suborbital planes. SpaceShipTwo measures 60 feet long and it is intended to carry two pilots and six passengers, who will pay for a 2 1/2 hour flight into suborbital space, to experience weightlessness and see the curvature of the Earth.
The unveiling is a first look at space tourism and was attended by some of the 300 or so potential passengers who have already put down a deposit of $20,000 toward the $200,000 outlay. It took place in California's Mojave Desert at the Mojave Air and Space Port in the center of Mojave, Ca. between Hwy 14 and Hwy 58 and just north of Edward Airforce Base. It is a test site for new aircraft technology, and near an array of mothballed aircraft seen on the horizon. The audience included Gov. Arnold Schwarzenegger, Princess Beatrice, and Sir Richard Branson "This will be the start of commercial space travel."You become the astronaut." Branson said.
SpaceShipTwo uses all the same basic technology, carbon composite construction and design as the first version SpaceShipOne, but it is around twice as large as that vehicle. Each passenger gets the same seating position with two large windows, one side window and one overhead, so that, if you don't want to float free in space, and you'd rather just remain in your seat, you still get a great chance to see the view.
According to Virgin Galactics website the mothership WhiteKnightTwo-Eve and SpaceShipTwo were designed by Burt Rutan, since SpaceShipTwo is larger then the mothership which was also enlarged with two fuselages with a long undercarriage. Both of WhiteKnightTwo's fuselages have a dihedral wing and the spaceship will be placed centrally between them, where the wing tips are joined at the highest point of the elongated 'W-shape' wing. With its fuselages some 50ft apart, WhiteKnightTwo's payload area is large and readily accessible from the ground.
News sources indicate that flight testing is expected to begin early next year. First flights will be captive carry flights with SpaceShipTwo staying attached to WhiteKnightTwo. After that the flight test team will begin glide flights in SpaceShipTwo and eventually powered flights with the rocket motor. Once flight testing is complete and the government regulations have been met, Virgin Galactic plans to regularly fly passengers into space from the company’s New Mexico space port. The $450 million project will eventually see six commercial vessels shuttling into space. The Enterprise-SpaceShipTwo will be carried to an altitude of 11 miles by a twin-hulled Mothership called WhiteKnightTwo-Eve, named after Sir Richard's mother. It will then release and fire its own hybrid rocket to propel it into space, accelerating to 2,500mph and soaring to 65 miles above the Earth. After hitting the top of its trajectory, the 22-yard-long ship will fall back to Earth, gliding the last part of the way before landing much like a plane.
Sir Richard indicated that by 2020 he hoped there would be as many as five competing spaceship companies and the price of a ticket could be driven down enough for hundreds of thousands of passengers to go into space. Experts say that by traveling into near-Earth orbit, the length of inter-continental flights could be cut dramatically, so a flight from London to Sydney could last just two hours. It is exciting high technology news for this high desert oasis.
The unveiling is a first look at space tourism and was attended by some of the 300 or so potential passengers who have already put down a deposit of $20,000 toward the $200,000 outlay. It took place in California's Mojave Desert at the Mojave Air and Space Port in the center of Mojave, Ca. between Hwy 14 and Hwy 58 and just north of Edward Airforce Base. It is a test site for new aircraft technology, and near an array of mothballed aircraft seen on the horizon. The audience included Gov. Arnold Schwarzenegger, Princess Beatrice, and Sir Richard Branson "This will be the start of commercial space travel."You become the astronaut." Branson said.
SpaceShipTwo uses all the same basic technology, carbon composite construction and design as the first version SpaceShipOne, but it is around twice as large as that vehicle. Each passenger gets the same seating position with two large windows, one side window and one overhead, so that, if you don't want to float free in space, and you'd rather just remain in your seat, you still get a great chance to see the view.
According to Virgin Galactics website the mothership WhiteKnightTwo-Eve and SpaceShipTwo were designed by Burt Rutan, since SpaceShipTwo is larger then the mothership which was also enlarged with two fuselages with a long undercarriage. Both of WhiteKnightTwo's fuselages have a dihedral wing and the spaceship will be placed centrally between them, where the wing tips are joined at the highest point of the elongated 'W-shape' wing. With its fuselages some 50ft apart, WhiteKnightTwo's payload area is large and readily accessible from the ground.
News sources indicate that flight testing is expected to begin early next year. First flights will be captive carry flights with SpaceShipTwo staying attached to WhiteKnightTwo. After that the flight test team will begin glide flights in SpaceShipTwo and eventually powered flights with the rocket motor. Once flight testing is complete and the government regulations have been met, Virgin Galactic plans to regularly fly passengers into space from the company’s New Mexico space port. The $450 million project will eventually see six commercial vessels shuttling into space. The Enterprise-SpaceShipTwo will be carried to an altitude of 11 miles by a twin-hulled Mothership called WhiteKnightTwo-Eve, named after Sir Richard's mother. It will then release and fire its own hybrid rocket to propel it into space, accelerating to 2,500mph and soaring to 65 miles above the Earth. After hitting the top of its trajectory, the 22-yard-long ship will fall back to Earth, gliding the last part of the way before landing much like a plane.
Sir Richard indicated that by 2020 he hoped there would be as many as five competing spaceship companies and the price of a ticket could be driven down enough for hundreds of thousands of passengers to go into space. Experts say that by traveling into near-Earth orbit, the length of inter-continental flights could be cut dramatically, so a flight from London to Sydney could last just two hours. It is exciting high technology news for this high desert oasis.
Thursday, December 3, 2009
Edison Proposes Solar Power Plant outside of Lake Los Angeles
The Antelope Valley Press has reported that Southern California Edison under its power generation division Edison Mission Energy is planning a150 megawatt photovoltaic plant in Antelope Valley, Ca. Edison Mission Energy has solar power operations in Mojave Ca. in Kern County presently. They are looking to expand south into the eastern edge of Los Angeles County at the San Bernardino County line. The proposed site is currently on presently or previously farmed agricultural land near 240th street East at Ave S.
Edison Mission Energy looks like they have targeted previously disturbed land, which should enable them to leap major environmental issues. The request for development has already begun earlier this summer, and they hope for final approval by late 2010. This project also uses photovoltaic technology which doesn’t require water, and the solar panels will only rise a few feet above the ground. It is a strategy that other solar power companies have used that can fast track the process, and limits the environmental impact.
The Wind Farms of Tehachapi and Solar Plants of Mojave, and Lancaster have become a green zone in the new energy economy. These areas were primarily vacant pre-developed land and have increased in value with the housing boom earlier this decade and now a green energy renaissance has begun. Just a decade ago you could buy raw land in these areas for as low as $500 to $1000 an acre, and now even in this current down real estate market the prices have increased a minimum of one hundred percent. Most of this land has been undesirable land for building or development with the rolling hills of Tehachapi and arid desert land in Lancaster far from current development, but now these Alternative Energy Companies and Edison have taken root. These companies are taking advantage of low priced land and looking toward the future. With the potential population growth and the alternative energy development the Antelope Valley’s future is taking shape. We have invested in pre-developed land in these areas and we have taken advantage of the news and development of the area these past five years. We also encourage our investors to take a closer view at similar prudent opportunities.
Edison Mission Energy looks like they have targeted previously disturbed land, which should enable them to leap major environmental issues. The request for development has already begun earlier this summer, and they hope for final approval by late 2010. This project also uses photovoltaic technology which doesn’t require water, and the solar panels will only rise a few feet above the ground. It is a strategy that other solar power companies have used that can fast track the process, and limits the environmental impact.
The Wind Farms of Tehachapi and Solar Plants of Mojave, and Lancaster have become a green zone in the new energy economy. These areas were primarily vacant pre-developed land and have increased in value with the housing boom earlier this decade and now a green energy renaissance has begun. Just a decade ago you could buy raw land in these areas for as low as $500 to $1000 an acre, and now even in this current down real estate market the prices have increased a minimum of one hundred percent. Most of this land has been undesirable land for building or development with the rolling hills of Tehachapi and arid desert land in Lancaster far from current development, but now these Alternative Energy Companies and Edison have taken root. These companies are taking advantage of low priced land and looking toward the future. With the potential population growth and the alternative energy development the Antelope Valley’s future is taking shape. We have invested in pre-developed land in these areas and we have taken advantage of the news and development of the area these past five years. We also encourage our investors to take a closer view at similar prudent opportunities.
Sunday, November 15, 2009
Gold and California Vacant Land as an Investment Hedge against Inflation
Gold and precious metals have been and still are the best hedge against inflation. But you have to look at precious metals as a paper asset versus silver coins and gold bars. Initially, what is a hedge against inflation? An inflation hedge is an asset that loses little value in periods of rising prices. It therefore holds its value and purchasing power during an inflationary period. Investors expecting inflation will typically buy this asset type to hedge against rising prices. Precious metals will actually increase in value since they are such an ideal inflation hedge.
The best way to address this question is to look at real assets versus financial assets. Real assets have intrinsic value, which is value of their own. They have direct or indirect usefulness like cars, wheat, corn, gold, real estate, land, and even appliances etc. Financial assets are a claim of profit of a firm, family or government. They would be stocks, bonds, mortgages, trust funds and the likes. Generally, real assets like gold, vacant land, and other commodities are a better hedge against inflation. These real assets have a value of their own, and are not devalued when everything else is inflating in price. Ideal hedges should hold their value over time and not lose their value. Produce and cars lose value over time, while precious metals (gold, silver, palladium), and vacant land and even wine will hold its value.
Another key element of an inflation hedge is its marketability. Is there a market for the commodity at virtually any given time? There is a market for soybeans, heating oil, gold and land, but things like shoes, furniture, and stocks have a limited market, and re-sale market. Another feature of a good hedge is its divisibility. Essentially can the asset be broken down into smaller portions? A house, car and land can not be broken down, but gold, gas, and agricultural products can be.
The best hedge against inflation has been and will continue to be gold, but we are referring to the hard asset of coins, bars, and even a mine that you own. Holding gold in stocks, ETF’s, or shares in a gold or silver mine is a financial asset and not a good hedge. Real Estate like a rental house, apartment, or vacant land is a good hedge but not the best, since it is not as marketable and not divisible like gold and other commodities.
The problem is the availability of gold coins and bars and nobody but a farmer will hold perishable commodities like wheat, or corn in their back yard. We think vacant land is a good alternative as an inflation hedge for investors since it is inexpensive, available and it will hold its value until inflation ebbs. It also doesn’t need to be maintained, will not deteriorate, and it can’t be rustled or stolen.
The best way to address this question is to look at real assets versus financial assets. Real assets have intrinsic value, which is value of their own. They have direct or indirect usefulness like cars, wheat, corn, gold, real estate, land, and even appliances etc. Financial assets are a claim of profit of a firm, family or government. They would be stocks, bonds, mortgages, trust funds and the likes. Generally, real assets like gold, vacant land, and other commodities are a better hedge against inflation. These real assets have a value of their own, and are not devalued when everything else is inflating in price. Ideal hedges should hold their value over time and not lose their value. Produce and cars lose value over time, while precious metals (gold, silver, palladium), and vacant land and even wine will hold its value.
Another key element of an inflation hedge is its marketability. Is there a market for the commodity at virtually any given time? There is a market for soybeans, heating oil, gold and land, but things like shoes, furniture, and stocks have a limited market, and re-sale market. Another feature of a good hedge is its divisibility. Essentially can the asset be broken down into smaller portions? A house, car and land can not be broken down, but gold, gas, and agricultural products can be.
The best hedge against inflation has been and will continue to be gold, but we are referring to the hard asset of coins, bars, and even a mine that you own. Holding gold in stocks, ETF’s, or shares in a gold or silver mine is a financial asset and not a good hedge. Real Estate like a rental house, apartment, or vacant land is a good hedge but not the best, since it is not as marketable and not divisible like gold and other commodities.
The problem is the availability of gold coins and bars and nobody but a farmer will hold perishable commodities like wheat, or corn in their back yard. We think vacant land is a good alternative as an inflation hedge for investors since it is inexpensive, available and it will hold its value until inflation ebbs. It also doesn’t need to be maintained, will not deteriorate, and it can’t be rustled or stolen.
Wednesday, November 4, 2009
The General Eminent Domain process by a Government Agency on your Property
Typically, when the government wishes to take your property by eminent domain, you can expect them to engage in the following steps in about the following order. This is a straight forward process, but untypical cases do occur. The government may also be forced to pay moving or lease expenses as part of the process, but certainly not required in vacant land eminent domain. There has been and will be a number of eminent domain actions by Los Angeles County in Antelope Valley in the recent past and many proposals for the future.
The government agency will contact you usually by mail to express interest in your property and scheduling an appraisal or environmental assessment of the property.
They will then appraise the property, and any improvements. The appraiser will be by their approval though. You can engage your own appraiser at the government expense also. Once appraised the government agency will make an offer to purchase the property. They will include a summary of the appraisal which they use to make their offer. A subsequent notice of public hearing to adopt "resolution of necessity" to acquire your property by eminent domain will begin. A Public hearing is announced and held to adopt the "resolution of necessity" to acquire your property by eminent domain. The Eminent domain case is filed in the court with jurisdiction and a notice is served to you the property owner. A deposit by agency of the probable amount of just compensation is paid into court and motion by agency for early possession of the property. This would be the appraiser’s figure, which they likely offered you before they took you to court. Then discovery procedure proceeds where any depositions and documents are gathered. This is where you the property owner provide your appraiser documentation. At this point both sides are attempting to get the fair market value. The government attempts to get an agreed settlement on the fair market value before going to trial. You should have a good case for more money before the last step which is the trial date. If settlement cannot be reached, then a trial of the eminent domain takes place before a jury who will determine for both parties the expected fair market value. The jury returns verdict and judgment is disclosed. The government agency then will compensate the property owner the jury’s judgment of the fair market value.
In most cases a settlement is agreed to and completed before a trial. Eminent domain can be desirable and undesirable for the property owner. If you look at real estate as a commodity then getting fair market value for the benefit of public use is a very good exchange. But if you are losing a home that has been a anchor for your family, or a business which you grew from the ground up then eminent domain can be a bitter pill, and anything but fair.
The government agency will contact you usually by mail to express interest in your property and scheduling an appraisal or environmental assessment of the property.
They will then appraise the property, and any improvements. The appraiser will be by their approval though. You can engage your own appraiser at the government expense also. Once appraised the government agency will make an offer to purchase the property. They will include a summary of the appraisal which they use to make their offer. A subsequent notice of public hearing to adopt "resolution of necessity" to acquire your property by eminent domain will begin. A Public hearing is announced and held to adopt the "resolution of necessity" to acquire your property by eminent domain. The Eminent domain case is filed in the court with jurisdiction and a notice is served to you the property owner. A deposit by agency of the probable amount of just compensation is paid into court and motion by agency for early possession of the property. This would be the appraiser’s figure, which they likely offered you before they took you to court. Then discovery procedure proceeds where any depositions and documents are gathered. This is where you the property owner provide your appraiser documentation. At this point both sides are attempting to get the fair market value. The government attempts to get an agreed settlement on the fair market value before going to trial. You should have a good case for more money before the last step which is the trial date. If settlement cannot be reached, then a trial of the eminent domain takes place before a jury who will determine for both parties the expected fair market value. The jury returns verdict and judgment is disclosed. The government agency then will compensate the property owner the jury’s judgment of the fair market value.
In most cases a settlement is agreed to and completed before a trial. Eminent domain can be desirable and undesirable for the property owner. If you look at real estate as a commodity then getting fair market value for the benefit of public use is a very good exchange. But if you are losing a home that has been a anchor for your family, or a business which you grew from the ground up then eminent domain can be a bitter pill, and anything but fair.
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